President-elect Donald Trump has stirred controversy by demanding that Panama lower its fees on the Panama Canal or return the strategic waterway to the U.S. Speaking at a Turning Point USA event in Arizona, Trump said that Panama is charging “exorbitant prices” to American shipping and naval vessels and vowed to address the issue upon taking office in January.
The fees being charged by Panama are ridiculous, highly unfair,” Trump told an audience of supporters. “This complete rip-off of our country will immediately stop.”
Panama’s President José Raúl Mulino quickly hit back, saying the canal and its surrounding areas were “every square meter” of Panamanian territory. He said Panama’s sovereignty is not up for negotiation, thus setting a tone of defiance against any changes in the status quo.
The 51-mile-long Panama Canal has been independent of the country of Panama since 1999, after years of treaties between the U.S. and Panama regarding this vital trade route of the Atlantic and Pacific oceans. Today, an estimated 14,000 vessels, including container ships and military vessels, cross the canal yearly.
Trump’s comments mark a stark shift in U.S. diplomacy and foreign policy under the business magnate, especially in wielding economic grievances as leverage for territorial concessions. The comments came a day after he referred to the canal in a social media post as a “vital national asset” that Panama is exploiting due to its strategic position.
Apart from Panama, Trump also criticized Canada and Mexico for “unfair trade practices” and accused them of failing to curb drug trafficking and illegal immigration. However, he praised Mexican President Claudia Sheinbaum, calling her a “wonderful woman.”
The event in Arizona marked Trump’s first major public appearance since a U.S. government funding bill was passed. He had refrained from discussing the hot-button issue of raising the debt ceiling but instead homed in on immigration, crime, and foreign trade themes that are central to his campaign.
Also, Trump brushed off speculation regarding Elon Musk’s presidential pursuit by joking about it throughout the speech and reinforcing his re-election. The event in question was organized by Turning Point USA, which has previously come into the spotlight for activating voters for Trump, displaying one more time its influence within the conservative sphere.
With his bold pronouncements, Mr. Trump signaled a confrontational approach to international economic issues that involve territorial disputes and opened the possibility of diplomatic collisions with some of the significant trading partners.
